Reporting for the Washington Post in 1996, Thomas Lippman wrote that “The total budget for civilian international programs, the so-called 150 account, started to decline in the mid-1980s. It leveled off during the Bush administration, then resumed a downward slide in President Clinton’s first year.” He noted that “the relentless budget pressure that began in the mid-1980s accelerated with the Clinton administration’s deficit-reduction plan, forcing the closing of consulates, aid missions, libraries, cultural centers and even a few entire embassies, from Italy to Indonesia, from Antigua to Thailand” (see U.S. Diplomacy’s Presence Shrinking).

Bill Clinton was elected President of the United States defeating incumbent George H. W. Bush in 1992. Warren M. Christopher was nominated Secretary of State by then President-elect Clinton in December 1992. Christopher was confirmed by the U.S. Senate on January 20, 1993, and sworn in the next day. Two months into the new administration, Secretary Christopher made his first official congressional appearance as Secretary of State before the Subcommittee on Commerce, Justice, State, and Judiciary House Appropriations Committee to talk about redirecting American foreign policy, refocusing the aid budgets, and reforming institutions.

Secretary Christopher at that time said that “American foreign policy in the years ahead will be grounded in what President Clinton has called the three “pillars” of our national interest: first, revitalizing our economy; second, updating our security forces for a new era; and, third, protecting democracy as the best means to protect our own national security while expanding the reach of freedom, human rights, prosperity, and peace.” He talked about Saddam Hussein, “If the lawlessness of [Iraqi President] Saddam Hussein has taught us any single lesson, it is that weapons of mass destruction, especially when combined with missile technology, can transform a petty tyrant into a threat to world peace and stability.” Secretary Christopher talked about the State Department budget, “It will be a tough budget for tough times. It will be a flexible budget that seeks austerity, not as a hardship to be endured but as a challenge to innovate and do our job better. Above all, we hope that this budget will mark a transitional step to a truly focused budget that sets priorities and puts resources behind them.”

Oh, brother where are ya?

In February 1993, Secretary Christopher also sent a message to State Department employees on the Implementation Directive on Reorganization. Two months into the Trump Administration, and days after the OMB released Trump’s “skinny budget” we have yet to hear from Secretary Tillerson on where the State Department go from here. We know that he supports the budget cuts for his department, and he has made no public effort of defending the funding and programs for his agency but the top diplomat of the United States still has not articulated the foreign policy priorities of this administration. If Secretary Tillerson has sent a message to his troops in Foggy Bottom, we have yet to hear about it or its contents.

The proposed FY18 budget slashes the international affairs budget by 28% or 36% with Overseas Contingency Operation (OCO) funding factored in. If passed by Congress, what happens to That Three-Legged Stool of American Foreign Policy? As diplomacy and development will be hobbled by cuts, are we going to see an exponential growth in private contractors in support of DOD, diplomacy and development? Or are we going to just see staffing gaps and reduced diplomatic footprints from Algeria to Zimbabwe?

In Tillerson’s recent interview with IJR, he said about the State Department budget that “One can say it’s not going to happen in one year, and it’s not.”

He’s right. The cuts may happen this year, and next year, and every fiscal year thereafter. It sounds to us like an “American First” foreign policy does not see much use for diplomacy. So we expect that the State Department budget will continue to be targeted during the entire Trump term. But if history is any indication, the decisions made today will have repercussions for our country down the road. Back in 1993, Secretary Christopher said, “when the time eventually comes to restore diplomatic relations with Iran, Iraq, Somalia and Libya, the money and personnel for those posts probably will have to come out of existing resources, officials said, thus increasing the pressure to close marginal posts elsewhere.” In 1996, the then Arms Control and Disarmament Agency (ACDA) director John D. Holum warned that the agency “no longer has a U.S. technical expert assigned to the U.N. weapons inspection team in Iraq.”

With the exception of Iran, we are back in Iraq, and Somalia, and we know what happened in Libya. We don’t grow diplomats overnight. Expertise and diplomatic muscle grow with time, with every assignment, with every challenge. What happens when the next crisis erupts in Asia? Can we just pluck diplomats and development experts from the OPM growth chamber? Or are we going to have a civilian surge once more with diplomats lacking experience and language skills thrown into a pit and then expected to do an effective job?

Remember, do you remember?

We should note that the Democrats had control of the House and the Senate after the 1992 elections but the midterm elections in 1994 resulted in a net gain of 54 seats in the House of Representatives for the GOP, and a pickup of eight seats in the Senate. That was the Gingrich Revolution. By the way,R.C. Hammond who previously served as press secretary to Newt Gingrich (a vocal Trump ally) is now a communications adviser for Secretary Tillerson.

WaPo reported that between 1993-1996 “the State Department has cut more than 2,000 employees and shuttered consulates in 26 foreign cities. The Agency for International Development (AID), which runs foreign aid programs, has been hit especially hard by the Republican-controlled Congress and has closed 23 missions overseas.”

In 1995, according to NYT: The U.S. ambassadors to Italy, France, Britain, Spain, the E.U., Germany, Russia and NATO reportedly got together and sent a secret cable to Secretary Christopher, signed by all of them, telling him that the “delivery system” of U.S. foreign policy was being destroyed by budget cuts. They pleaded with him to mobilize those constituencies in the U.S. that value the work of embassies, and volunteered to come to Washington to testify before Congress in their defense. The ambassadors got a polite note back from Deputy Secretary Strobe Talbott, telling them he understood their concerns but that there was a new mood in Congress. There was no invitation to testify.

The State Department at that time reportedly also promoted the concept of “diplomatic readiness,” similar to military readiness, “in hopes of persuading Congress to divert some money from the defense budget into diplomacy and foreign aid — activities that, in the diplomats’ view, save money over time by reducing the need for military actions.”

More than 100 businesses, trade associations, law firms and volunteer groups did organize a “Campaign to Preserve U.S. Global Leadership” without much success.

And this despite the fact that a 1994 GAO study indicates that only 38 percent of the U.S. government personnel in embassies work for the State Department, while 36 percent work for the Pentagon, 5 percent for Justice and 3 percent for Transportation. The other 18 percent includes representatives of the Treasury, Agriculture and Commerce departments. We don’t know what is the current breakdown of federal agencies operating overseas under the State Department umbrella but if the Trump Administration starts turning off the lights in Africa, or Asia for instance, that could also prove problematic for the Pentagon.

What a 27% budget cut looked like for the international affairs budget?

By Fall 1995, the State Department released a Q&A on the International Affairs Budget–A Sound Investment in Global Leadership. It includes the following:

Q. Since most Americans favor reducing government spending to balance the federal budget, have the State Department and other foreign affairs agencies done anything to cut costs?

A. Yes, the Administration has done a great deal to cut costs. We have already:

— Cut the foreign assistance budget request by 20%;

–Trimmed more than 1,100 jobs at the State Department and 600 jobs at the U.S. Information Agency (USIA);

–Identified, for elimination by 1997, about 2,000 jobs at the U.S. Agency for International Development (USAID);

According to WaPo in 1996, USAID’s overall work force “has been reduced from 11,500 to 8,700 and is heading down to 8,000. The number of full “sustainable development missions” — on-site teams promoting long-term diversified economic development — declined from 70 at the start of the administration to 30.”

That’s what a 27% budget cut inflected on the international affairs budget did in the 90’s.

Who ya gonna call?

Senate Majority leader Mitch McConnell was recently quoted saying, “America being a force is a lot more than building up the Defense Department. Diplomacy is important, extremely important, and I don’t think these reductions at the State Department are appropriate.”

According to the Washington Examiner, Senate Foreign Relations Chairman Bob Corker, R-Tenn apparently signaled that President Trump’s initial proposed budget “won’t dictate how the State Department gets funded.” “The president’s budget goes in the waste basket as soon as it gets here,” he said.

We should note that in the 1990s, both houses of Congress (GOP) and a White House under a Democrat worked together to slashed the State Department budget. It was not a question of how much to cut, but where to cut. This time around, we have a Republican Congress and a Republican White House, but while the WH is gunning for these cuts, the Senate particularly, appears not to be quite on board with the slash and burn cuts. Still, we are reminded what former Ambassador to the Conference on Disarmament Stephen J. Ledogar (1990-1997) noted in his oral history (PDF) — that “Not very many people will admit this, but the administration bowing to Congress on those consolidations was part of the price that was paid by the Clinton administration to Jesse Helms in exchange for him agreeing to let the Chemical Weapons Convention go through the Senate.”

So … while there are differences in the circumstances during the budget cuts in the 1990’s and the proposed budget cuts in the current and FY18 fiscal years, we are mindful how things can change with the right carrots.

As he gets into Kabul to embed with the military, the author notes “a USAID (United States Agency for International Development) billboard proclaiming women’s rights in English and Dari that few Afghan females can read, because almost 90 percent of them are still illiterate after more than a decade and $100 billion spent on grotesquely mismanaged US aid programs.”

That Ring Road? Wissing writes, “During his frantic reelection push after the botched Iraq invasion, President George W. Bush decided that refurbishing the Ring Road on a yeehaw schedule in 2003 would show Afghans how things were done the American way. Well, it did. The highway is infamous for its poor construction and extravagant price.”

It’s that kind of book. It reminds us of Peter Van Buren’s We Meant Well book on Iraq.

A couple of notes, Chapter 35 titled Embassy includes a nugget about Embassy Kabul refusing to allow the author to meet with SIGAR John Sopko who was also at post, without a minder. Sopko, according to Wissing was furious, demanding a private meeting without embassy handlers but “the diplomats won’t budge.”

Chapter 36 talks about Loss. A cynical USAID financial officer earlier told the author that “given the amount of money the United States was pushing on the Afghan insiders who were “bankers,” he didn’t blame them for stealing it.” This is in relation to the Bank of Kabul scandal that involved an almost $900 million Ponzi scheme of fraudulent loans. The chapter also talks about Anne Smedinghoff and four other Americans, including three soldiers and an interpreter lost during a suicide attack in Qalat. The author previously meet Smedinghoff during a visit to the embassy compound in Kabul where the latter acted as his minder, assigned to escort him for an interview with a Justice Department official who was working the Afghan Threat Finance Cell (ATFC).

The author told us that he find audiences in the U.S. are often surprised to learn that Afghanistan remains our largest foreign military engagement–$44 billion requested for FY 2017 (vs $5 billion for Syria) “to add to the trillion dollars already wasted.” He also notes that around 10,000 US troops are still there, along with up to 26,000 defense contractors.

We’re posting an excerpt of the book courtesy of Amazon Kindle/Preview:

Below is the transcript of Secretary Tillerson’s ‘meet and greet’ remarks at US Mission Turkey, his first one since his appointment as secretary of state. No photos of the embassy ‘meet and greet’ available so far.

Thank you, thank you. And it is, indeed, a pleasure to be in Ankara and to have the opportunity to visit the embassy here and get a chance to speak to all of you. And what a great way to be greeted, with a great-looking bunch of Boy Scouts and Girl Scouts, and I’m well familiar with both of those organizations and a lifelong scouter myself, and I want to express my appreciation to the adult leadership that it takes to make those opportunities available to these young people. And to the parents that support them as they move down that advancement pathway to earn their way to higher achievement, I’d like to thank all of you as well.

This – and I don’t have to tell you how important this particular mission is to us in terms of its strategic value, its place in the region, but certainly the complexities of what we’re dealing with as a nation and as a world with what’s happening just on the borders here to the south of Turkey. I know it’s a high-stress posting, I know it’s been a difficult couple of years for everyone in terms of status changes in this mission, as well as the other three locations. And so we appreciate your dedication and your commitment throughout all of that, staying the course, keeping up and out in front of you what you know is important, and what’s very important to our nation back home. So I thank all of you for your commitment throughout that period of time.

I also want to talk about three values that I’ve been trying to talk everywhere I go within the State Department. I expressed these on day one when I made my first-day appearance at the Department, and that’s that I have three key values that I think will be useful to all of us as we go about our daily work in terms of how we interact with each other and in terms of how we interact externally as well.

And the first of those is accountability, that I think it’s really important with the work we do, because it is so vital and important that as we produce that work, we’re holding ourselves accountable to the results, and that’s the only way we can hold our partners accountable. We intend to hold other nations accountable in our alliances for commitments they’ve made, but that starts with us holding ourselves accountable, first as individuals, then collectively as an organization. So we ask that everyone really devote themselves to that, recognize that we’re not going to be right all the time. We may make some mistakes and that’s okay. We hold ourselves accountable to those and we’ll learn from those and we’ll move forward, but that it’s important that we always own what we do – that it’s ours and we’re proud to own it.

The second value I’m talking a lot about is honesty. That starts with being honest with each other, first in terms of our concerns, in terms of our differences, and we invite and want to hear about those. That’s how we come to a better decision in all that we do. And only if we do that can we then be honest with all of our partners and allies around the world as well. And still, I mean, we’re going to have our differences, but we’re going to be very honest and open about those, so at least we understand them.

And then lastly is just treating everyone with respect. I know each of us wants to be treated with respect. You earn that by treating others with respect. And again, regardless of someone’s stature in the organization or regardless of what their work assignment may be, or regardless of how they may want to express their view, at all times we’re going to treat each other with respect. And in doing that, you’ll earn the respect of others. So we ask that everyone devote themselves to accountability, honesty, and respect.

And starting with the scout promises and laws, that’s not a bad place either. If you haven’t looked at those, you ought to take a look at them. They’re a pretty good playbook for life, I can tell you that. They’ve been a great playbook in my life throughout all of my professional career prior to coming to this position, and they continue to guide me every day in terms of how I want to hold myself accountable is against those principles.

So again, I appreciate what all of you are doing on behalf of the State Department, in particular what you’re doing on behalf of our country, both those of you that are here on posting as well as those of you who are part of our national workforce as well. So I thank all of you for your dedication and commitment. I appreciate you coming out today. It is a rather nice, beautiful day, so I knew I’d come out too. (Laughter.) But again, thank you all for what you’re doing. It’s just a real delight to see you. Thank you. (Applause.)

In October 2016, the State Department updated its Travel Warning for Turkey to announce the mandatory departure of family members of employees assigned to the Consulate General in Istanbul (see U.S. Consulate General Istanbul: Post On Evacuation Status With a “No Curtailment” Policy?). On March 28, 2017, the State Department issued a new Travel Warning concerning the increased threats from terrorist groups in the country. The updated warning also states that the evacuation order for USCG Istanbul family members issued in October had been lifted. That means family members on evacuation status may now return to join the FS employees assigned to Istanbul although there are now restrictions on personal and official travel by USG employees and family members traveling and residing in Istanbul.

U.S. citizens are warned of increased threats from terrorist groups in Turkey. Carefully consider the need to travel to Turkey at this time, and avoid travel to southeast Turkey due to the persistent threat of terrorism. On March 27, the Department of State terminated its October 29, 2016, decision to direct family members of employees posted to the U.S. Consulate General in Istanbul to depart Turkey temporarily. However, there are restrictions on personal and official travel by U.S. government personnel and their family members travelling to and residing in Istanbul. Restrictions on travel by U.S. government personnel to certain areas in southeast Turkey, including Adana, remain. This replaces the travel warning dated January 25, 2017.

In 2016, numerous terrorist attacks involving shootings, suicide bombings, and vehicle-borne bombings in tourist areas, public spaces, private celebrations, sporting events, and government, police, and military facilities throughout Turkey resulted in hundreds of deaths. The most recent attacks include a mass shooting at the Istanbul Reina nightclub on January 1, 2017, and simultaneous suicide bombings near Istanbul’s Besiktas/Vodafone Soccer Stadium on December 10, 2016. In addition, an increase in anti-American rhetoric has the potential to inspire independent actors to carry out acts of violence against U.S. citizens.

Additional attacks in Turkey could occur at major events, tourist sites, restaurants, nightclubs, commercial centers, places of worship, and transportation hubs, including aviation services, metros, buses, bridges, bus terminals, and sea transport. Foreign and U.S. tourists and expatriates have been explicitly targeted by terrorist organizations in Turkey for kidnapping and assassination. We remind U.S. citizens to review their personal security plans including communications preparedness/connectivity, monitor local news for breaking events, remain vigilant at all times, and check in with loved ones after an attack or security incident.

On January 4, the Turkish government extended the state of emergency through April 18, 2017. The Turkish government will decide in April whether to extend the state of emergency for another 90 days. Under the state of emergency, security forces have expanded powers and the government has, at times, restricted internet access and media content. U.S. citizens have been deported and/or detained and held without access to lawyers or family members under the state of emergency. Delays or denial of consular access to U.S. citizens detained or arrested by security forces, some of whom also possess Turkish citizenship, have become more common. U.S. citizen employees of some non-governmental organizations in Turkey have also recently experienced increased scrutiny and denials related to residence permit applications. The Department continues to monitor the security environment for potential impact on the safety and well-being of U.S. citizens in Turkey and urges U.S. citizens to register in the Smart Traveler Enrollment Program (STEP) on www.travel.state.gov to stay informed.

U.S. government personnel and their family members residing in or visiting Istanbul are restricted from congregating or traveling in large groups and are not permitted to visit these Istanbul locations without prior approval from the Consulate:

Tourist destinations throughout Istanbul, to include historical sites, monuments, large bazaar markets, and museums.

U.S. government personnel living in or visiting Turkey continue to require approval from the U.S. Embassy to visit the southeastern provinces of Hatay, Kilis, Gaziantep, Sanliurfa, Sirnak, Diyarbakir, Van, Siirt, Mus, Mardin, Batman, Bingol, Tunceli, Hakkari, Bitlis, and Elazig. Travel within Adana by U.S. government personnel may also be subject to restriction. Furthermore, the U.S. Embassy may prohibit movements by its personnel and those of its subordinate Consulates to these areas on short notice for security reasons. Due to recent acts of violence and the potential for reprisal attacks by terrorist groups due to continued Turkish military activity in Syria, we urge U.S. citizens to defer travel to large urban centers near the Turkish/Syrian border. U.S. citizens should also be aware that the Government of Turkey has closed its border with Syria. The Government of Turkey prohibits border crossings from Syria into Turkey, even if the traveler entered Syria from Turkey. Turkish authorities will consider permitting the passage of individuals seeking emergency medical treatment or safety from immediate danger on a case by case basis.

On March 29, the Justice Department announced the arrest of State Department employee, Candace Marie Claiborne, 60, of Washington, D.C. for obstructing an official proceeding and making false statements to the FBI, both felony offenses, and for allegedly concealing numerous contacts that she had over a period of years with foreign intelligence agents. The State Department phone directory dated March 27, 2017 lists Candace Claiborne as an Office Management Specialist (OMS) at the Office of Caucasus Affairs and Regional Conflicts (EUR/CARC). This office has desk officers for Armenia, Georgia, and Azerbaijan, as well as the Minsk Group Co-Chair. The Minsk Group provide a forum for negotiations towards a peaceful settlement in the Nagorno-Karabakh conflict involving Armenia and Azerbaijan.

The DOJ announcement notes that Claiborne has been an Office Management Specialist (OMS) for the Department of State in since 1999 and has served overseas at a number of posts, including embassies and consulates in Baghdad, Iraq, Khartoum, Sudan, and Beijing and Shanghai, China. Given the lengths of the tours of duty, we suspect that she was in more than four posts in 18 years, but we have yet to see a copy of the FBI complaint. OMSs provide office management and administrative support including managing the calendar(s) and schedule(s) for senior staff, proofing, editing, tracking and filing documents, preparing agenda and materials for meetings, providing computer and mobile device support, knowledge management, and planning and assisting with official events and visitors. Read more about OMSs here.

According to the FBI agent’s affidavit supporting the criminal complaint and arrest warrant, “there is probable cause to believe that Claiborne made materially false statements to federal law enforcement officers, in violation of 18 U.S.C. 1001, and conspired with Co-Conspirators A B, and C to obstruct an official proceeding, in violation of 18 U.S.C. 1512. These criminal violations werc either begun or committed in Washington D.C., where Claiborne resides and works, and where the Department of State is headquartered or were begun or committed overseas, out of the jurisdiction of any particular state.” But who’s Co-Conspirator A, and why wasn’t he charged?

State Department Employee Arrested and Charged With Concealing Extensive Contacts With Foreign Agents

A federal complaint was unsealed today charging Candace Marie Claiborne, 60, of Washington, D.C., and an employee of the U.S. Department of State, with obstructing an official proceeding and making false statements to the FBI, both felony offenses, for allegedly concealing numerous contacts that she had over a period of years with foreign intelligence agents.

The charges were announced by Acting Assistant Attorney General Mary B. McCord for National Security, U.S. Attorney Channing D. Phillips of the District of Columbia and Assistant Director in Charge Andrew W. Vale of the FBI’s Washington Field Office.

“Candace Marie Claiborne is a U.S. State Department employee who possesses a Top Secret security clearance and allegedly failed to report her contacts with Chinese foreign intelligence agents who provided her with thousands of dollars of gifts and benefits,” said Acting Assistant Attorney General McCord. “Claiborne used her position and her access to sensitive diplomatic data for personal profit. Pursuing those who imperil our national security for personal gain will remain a key priority of the National Security Division.”

“Candace Claiborne is charged with obstructing an official proceeding and making false statements in connection with her alleged concealment and failure to report her improper connections to foreign contacts along with the tens of thousands of dollars in gifts and benefits they provided,” said U.S. Attorney Phillips. “As a State Department employee with a Top Secret clearance, she received training and briefing about the need for caution and transparency. This case demonstrates that U.S. government employees will be held accountable for failing to honor the trust placed in them when they take on such sensitive assignments”

“Candace Claiborne is accused of violating her oath of office as a State Department employee, who was entrusted with Top Secret information when she purposefully mislead federal investigators about her significant and repeated interactions with foreign contacts,” said Assistant Director in Charge Vale. “The FBI will continue to investigate individuals who, though required by law, fail to report foreign contacts, which is a key indicator of potential insider threats posed by those in positions of public trust.”

The FBI arrested Claiborne on March 28. She made her first appearance this afternoon in the U.S. District Court for the District of Columbia.

According to the affidavit in support of the complaint and arrest warrant, which was unsealed today, Claiborne began working as an Office Management Specialist for the Department of State in 1999. She has served overseas at a number of posts, including embassies and consulates in Baghdad, Iraq, Khartoum, Sudan, and Beijing and Shanghai, China. As a condition of her employment, Claiborne maintains a Top Secret security clearance. Claiborne also is required to report any contacts with persons suspected of affiliation with a foreign intelligence agency.

Despite such a requirement, the affidavit alleges, Claiborne failed to report repeated contacts with two intelligence agents of the People’s Republic of China (PRC), even though these agents provided tens of thousands of dollars in gifts and benefits to Claiborne and her family over five years. According to the affidavit, the gifts and benefits included cash wired to Claiborne’s USAA account, an Apple iPhone and laptop computer, Chinese New Year’s gifts, meals, international travel and vacations, tuition at a Chinese fashion school, a fully furnished apartment, and a monthly stipend. Some of these gifts and benefits were provided directly to Claiborne, the affidavit alleges, while others were provided through a co-conspirator.

According to the affidavit, Claiborne noted in her journal that she could “Generate 20k in 1 year” working with one of the PRC agents, who, shortly after wiring $2,480 to Claiborne, tasked her with providing internal U.S. Government analyses on a U.S.-Sino Strategic Economic Dialogue that had just concluded.

Claiborne, who allegedly confided to a co-conspirator that the PRC agents were “spies,” willfully misled State Department background investigators and FBI investigators about her contacts with those agents, the affidavit states. After the State Department and FBI investigators contacted her, Claiborne also instructed her co-conspirators to delete evidence connecting her to the PRC agents, the affidavit alleges.

Charges contained in a criminal complaint are merely allegations, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

The maximum penalty for a person convicted of obstructing an official proceeding is 20 years in prison. The maximum penalty for making false statements to the FBI is five years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.

At her court appearance today, Claiborne pleaded not guilty before the Honorable Magistrate Judge Robin M. Meriweather. A preliminary hearing was set for April 18.

The FBI’s Washington Field Office is leading the investigation into this matter. The case is being prosecuted by Assistant U.S. Attorneys John L. Hill and Thomas A. Gillice for the District of Columbia and Trial Attorney Julie Edelstein of the National Security Division’s Counterintelligence and Export Control Section.

It looks like the arrest warrant was issued yesterday, and the complaint was unsealed today, but we have yet to locate the charging document. As with the DOJ statement, we should note that charges contained in a criminal complaint are allegations, and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.

FULL TEXT: State Department employee arrested and charged with concealing extensive contacts with foreign agents. pic.twitter.com/N1XUce1dXN

Last December, Public Law No: 114-254 (12/10/2016) was signed into law to provide continuing appropriations for most federal agencies through April 28, 2017. This continuing resolution (CR) was passed and it prevented a shutdown of the federal government that would have occurred when the previous CR expired on December 9, 2016 (at that time, eleven of the twelve FY2017 regular appropriations bills that fund the federal government had not been enacted). The bill funded most projects and activities at the rate established for FY2017 spending by the Budget Control Act of 2011 including additional emergency, disaster relief, and Overseas Contingency Operations (OCO) funding.

It looks like the House will be in session for eight calendar days in April, while the Senate will have ten days. With six months left in the current fiscal year and while Congress is expected to wrestle once more with that CR next month, the Trump Administration is also seeking cuts from the FY2017 budget. The “savings” from the proposed cuts in the current fiscal year will reportedly also go to DOD for additional military spending, and to help build that wall.

A memo sent by the administration on Friday to the House and Senate appropriations committees provides the first detailed look at the proposed cuts, and is expected to meet resistance as the budget blueprint did from lawmakers who have fewer than a dozen legislative days to craft and pass the trillion-dollar spending legislation to keep the lights on.
[…]
All told, the programs overseen by the Labor, Health and Human Services and Education subcommittee would see the greatest reductions, totalling $7.26 billion, followed by $2.88 billion from the subcommittee for State and Foreign Operations, including $1.16 billion to USAID foreign aid programs going to combating climate change, family planning and other global health initiatives.

The list of proposed reductions below is via Politico (see pages 11-12 above for the proposed cuts for the State Department).

Some programs will be slashed while others are zeroed out under the proposed cuts from the State/USAID budget for FY2017. In the case of PEPFAR (Aids) the proposal calls for “slowing the rate of new patients on treatment in FY17.” It slashed funds for peacekeeping operations, family planning/reproductive health, and refugee programs “because of lower projections in FY 2017 of refugee admissions.” Here are some of the most notable programs targeted for cuts this year under Trump’s proposal:

Development Assistance (DA) (-$562M): Proposed savings in the DA account include reducing support for bilateral climate change programs that are part of the previous Administration’s Global Climate Change Initiative. Further savings from the FY 2017 CR level can be achieved by reducing economic assistance in other sectors to programmatically sufficient levels, such as through reductions of up to 20 percent in basic and higher education (which has a large pipelines of unspent funds); biodiversity; democracy, human rights, and governance; agriculture and food security (while still addressing key objectives and priorities in the Global Food Security Act); and other sectors.

Economic Support Fund (ESF) (base) (-$290M): This decrease accepts the topline reduction in the House bill (-$274 million vs. CR), which included zeroing out the GCF. It then also reduces several sectors, including bilateral climate change, basic/higher education, democracy/governance, and economic growth.

President’s Emergency Plan for AIDS Relief (PEPFAR)/Global Health Programs (-$242M): This reduction would achieve savings by requiring PEPFAR to begin slowing the rate of new patients on treatment in FY 17, by reducing support to low-performing countries, by reducing lower-priority prevention programs, or by identifying new efficiencies or other savings.

International Narcotics Control and Law Enforcement (-$200M): This account can absorb a $200 million reduction from the annualized base CR rate with insignificant impact to the account, given carryover, the slow rate of FY 2016 obligations, and resources recaptured through de-obligations, recoveries, and proceeds of sale.

Foreign Military Financing (-$200M): This account can absorb a $200 million reduction from the annualized base CR rate by cutting funding for high income countries and consistent with funding restrictions for certain countries in the FY 2017 House and Senate bills.

International Organizations and Programs (-$169M): This account provides for non-assessed contributions to international organizations. This reduction would eliminate such contributions to most organizations funded through the account including the UN Population Fund and some contributions to climate change programs but preserve flexibility to make contributions to some organizations such as UNICEF as well as those supporting global security functions.

Educational and Cultural Exchanges (-$140M): Reduction or elimination of programs based on the ability to fund outside of ECE, ability to merge with other programs, and legacy programs in high income countries. Scale back of programs to prior year levels and/or 5-10% reductions given budgetary constraints.

Global Health Security (-$72M): This proposal zeroes out global health security programs at USAID in FY 2017 to realize up to $72.5 million in savings. These programs are currently supported with 2-year funds and it is unlikely the agency will obligate a significant portion of these funds under the current CR. This proposal instead seeks legislative authority to repurpose $72.5 million in remaining Ebola emergency funds to support these programs in FY 2017.

On March 23, President Trump announced his intent to nominate William Francis Hagerty IV of Tennessee to be his ambassador to Japan. The WH released the following brief bio:

William Francis Hagerty IV of Tennessee to be Ambassador Extraordinary and Plenipotentiary of the United States of America to Japan. Bill Hagerty began his career with the Boston Consulting Group (BCG) in 1984 as an International Management Consultant and spent three years in Japan managing BCG’s business with western clients throughout Japan and Asia. In 1991, Mr. Hagerty moved to Washington, D.C. to work as a White House Fellow reporting to the Vice President and focusing on international trade, commerce, treasury, defense, and telecom. Mr. Hagerty returned to the private sector in 1993 and served as CEO and board member of companies with extensive operations in Asia and Europe. From 2011 to 2015, Mr. Hagerty served in the Tennessee Governor’s Cabinet as Secretary for Trade and Commerce. During his tenure, Tennessee was the top state for jobs and economic growth from 2013 to 2015 and led the nation in foreign direct investment, 60% of which came from Japan. Mr. Hagerty has BS and JD degrees from Vanderbilt University. He and his wife, Chrissy, live in Nashville with their four children.

US Ambassador’s House, Tokyo, Japan (Photo via State/OBO)

Additional details from his online bio:

In July of 2016, Bill Hagerty took a leave of absence from Hagerty Peterson to serve as Director of Presidential Appointments for the 2016 Trump Presidential Transition Team, where he is responsible for the planning and execution of the process to effect the largest leadership transition in the world – one that ultimately encompasses over 4,000 Presidential Appointments.

A native of Tennessee, Mr. Hagerty attended Vanderbilt University and graduated Phi Beta Kappa with a degree in Economics. He then attended Vanderbilt Law School as a Wilson Scholar and was elected to the Law Review where he served as Associate Editor.

On March 24, USDOJ announced the sentencing of Jeffrey Jason Cooper to 30 years in prison for sex trafficking. Cooper recruited foreign university students from Kazakhstan through the Department of State’s Summer Work Travel Program (SWTP), falsely promising them clerical jobs at his fictitious yoga studio. According to DOJ, he fraudulently induced an educational exchange agency to sponsor the victims’ visas, and caused government officials to issue the victims temporary, non-immigrant “J-1” visas based on Cooper’s false and fraudulent offer of legitimate summer jobs.

Miami Beach Sex Trafficker Sentenced To 30 Years in Prison For International Trafficking Scheme Targeting Foreign University Students

Defendant Lured Foreign Students on False Promises in Furtherance of Interstate Prostitution and Erotic Massage Enterprise

Chief United States District Court Judge K. Michael Moore of the Southern District of Florida sentenced Jeffrey Jason Cooper, 47, of Miami Beach, Florida, to 30 years in prison for sex trafficking and related violations arising from the defendant’s scheme to recruit foreign students on false promises of legitimate summer jobs, and then to advertise them to customers of his prostitution and erotic massage enterprise. Chief Judge Moore also ordered Cooper to pay $8,640.00 in restitution to the victims.

A jury convicted Cooper on Nov. 17, 2016, of five counts of sex trafficking and attempted sex trafficking by fraud, three counts of wire fraud, two counts of importing and attempting to import aliens for prostitution or immoral purposes, and one count of using a facility of interstate commerce to operate a prostitution enterprise. According to evidence presented during the four-day trial, Cooper recruited foreign university students from Kazakhstan through the Department of State’s Summer Work Travel Program, falsely promising them clerical jobs at his fictitious yoga studio. In addition to defrauding the students, Cooper fraudulently induced an educational exchange agency to sponsor the victims’ visas, and caused government officials to issue the victims temporary, non-immigrant “J-1” visas based on Cooper’s false and fraudulent offer of legitimate summer jobs.

After the victims arrived in Miami, Cooper revealed to them for the first time that the yoga studio did not exist and that he expected them to perform erotic massages for customers of his erotic massage and prostitution enterprise. Witnesses testified that the victims, shocked and upset, tried to find work elsewhere but eventually gave up and began working for the defendant.

As established at trial, police began investigating Cooper after neighbors complained he was prostituting women from his apartment complex, and conducted an undercover operation that led to the recovery of the victims, one day before Cooper had scheduled them to travel to Los Angeles, California, where Cooper also operated his prostitution and erotic massage enterprise. When questioned by law enforcement, Cooper claimed that the victims cleaned apartments for him, and characterized his relationship with them as that of an “older brother.” Evidence at trial included records from Backpage.com advertising the victims’ services, and Facebook communications confirming that Cooper recruited the victims on false and fraudulent pretenses, revealing the true nature of his erotic massage and prostitution enterprise only after the victims arrived in the United States.

“The successful prosecution and decades-long sentence imposed on Jeffrey Cooper illustrate the international impact of law enforcement’s united efforts to combat human trafficking – whether by fraud, force or otherwise,” said Acting U.S. Attorney Benjamin G. Greenberg. “The U.S. Attorney’s Office will continue to bring to justice those individuals who knowingly exploit others for their own personal profit.”
[…]
“We are committed to working with our law enforcement partners to prevent situations where vulnerable individuals are exploited in human trafficking schemes such as this,” said Christian Schurman, acting director of the State Department’s Diplomatic Security Service (DSS). “Because of our global presence, DSS is positioned to work with U.S. and foreign law enforcement to stop those that would manipulate instruments of international travel to profit from selling human beings in this way.”

The case was investigated by HSI and DSS, with assistance from the Prosecutor General’s Office in Kazakhstan; the FBI Legal Attaché Office in Astana, Kazakhstan; the Justice Department’s Office of International Affairs, the Miami Dade Police Department and the North Bay Village, Florida, Police Department. The case was prosecuted by Assistant U.S. Attorney Seth M. Schlessinger, who was previously with the Southern District of Florida and is now with the Eastern District of Pennsylvania, and Trial Attorney Matthew T. Grady of the Civil Rights Division’s Human Trafficking Prosecution Unit.

Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov. Some of the documents including the complaint are also available online here through plainsite.org.

On March 23, the State Department reiterated during the Daily Press Briefing Secretary Tillerson’s excuse for ditching his traveling press:

[H]e was clear and he’s spoken about this in his interviews – is that he is committed to a smaller footprint. That’s not to say – let me be clear – that we’re not going to look at taking any press in future trips. I’m not saying that at all. But he is committed to a smaller footprint. And with respect to the trip to Asia, the space constraints on the plane did not allow, frankly, for a press contingent. So we worked with — [snip] So we work with our embassies. I think it is. And I can get into this. I don’t – we don’t need to have this out here, but I’m happily – happy to talk to you about this offline. But there’s a significant cost savings to taking the smaller plane, but that smaller plane requires – or has minimal seating.

Secretary Tillerson cited “cost savings” in using a smaller aircraft ( a 737), which apparently also “flies faster”; presumably in comparison to the 757 previously used by his predecessors?

The C-40 B/C is based upon the commercial Boeing 737-700 Business Jet. The body of the C-40 is identical to that of the Boeing 737-700, but has winglets. Both models have state of the art avionics equipment, integrated GPS and flight management system/electronic flight instrument system and a heads up display. Heading the safety equipment list is the traffic collision avoidance system and enhanced weather radar. The aircraft is a variant of the Boeing next generation 737-700, and combines the 737-700 fuselage with the wings and landing gear from the larger and heavier 737-800. The basic aircraft has auxiliary fuel tanks, a specialized interior with self-sustainment features and managed passenger communications. The cabin area is equipped with a crew rest area, distinguished visitor compartment with sleep accommodations, two galleys and business class seating with worktables.

The C-40B is designed to be an “office in the sky” for senior military and government leaders. Communications are paramount aboard the C-40B which provides broadband data/video transmit and receive capability as well as clear and secure voice and data communication. It gives combatant commanders the ability to conduct business anywhere around the world using on-board Internet and local area network connections, improved telephones, satellites, television monitors, and facsimile and copy machines. The C-40B also has a computer-based passenger data system. The C-40C is not equipped with the advanced communications capability of the C-40B. Unique to the C-40C is the capability to change its configuration to accommodate from 42 to 111 passengers.

The C-40 B/C is based upon the commercial Boeing 737-700 Business Jet. The C-40 B/C provides safe, comfortable and reliable transportation for U.S. leaders to locations around the world. The C-40B’s primary customers are the combatant commanders and C-40C customers include members of the Cabinet and Congress. (Courtesy photo)

Previously, the secretary of state’s airplane was a C-32, a specially configured version of the Boeing 757-200 commercial intercontinental airliner. This is the aircraft used by Secretary Kerry. 757 | C-32via af.mil:

The C-32 provides safe, comfortable and reliable transportation for our nation’s leaders to locations around the world. The primary customers are the vice president, using the distinctive call sign “Air Force Two,” the first lady, and members of the Cabinet and Congress. The C-32 body is identical to that of the Boeing 757-200, but has different interior furnishings and 21st century avionics. The passenger cabin is divided into four sections: A) The forward area has a communications center, galley, lavatory and 10 business class seats; B) The second section is a fully-enclosed stateroom for the use of the primary passenger. It includes a changing area, private lavatory, separate entertainment system, two first-class swivel seats and a convertible divan that seats three and folds out to a bed. C) The third section contains the conference and staff facility with eight business class seats. D) The rear section of the cabin contains general seating with 32 business-class seats, galley, two lavatories and closets.

The USAF C-32 fact sheet also says that this aircraft is more fuel efficient and has improved capabilities over its C-137 predecessor. “It can travel twice the distance on the same amount of fuel, and operate on shorter runways down to 5,000 feet (1,524 meters) in length. Its 92,000-pound (41,731 kilogram) fuel capacity allows the aircraft to travel 5,500 nautical miles unrefueled.”

Here is the side-by-side comparison of the two planes, the 757 that former Secretary Kerry used and the 737 that Secretary Tillerson is currently using.

Cost savings? Yes, but …

There are fixed costs associated with operating an aircraft that do not vary according to aircraft usage (crew, maintenance, labor, parts, operations overhead, administrative overhead, etc) so we requested from the State Department the cost savings identified with the Tillerson trip to Asia. Its official response was to direct us to the DOD comptroller for the travel per hour cost. According to the DOD Comptroller’s FY2017 hourly rates for fixed wing aircraft effective October 1, 2016 (used when the applicable aircraft are provided on a reimbursable basis), Secretary Tillerson’s 737/C-40C aircraft costs about a third of the previous secretary’s 757 cost per hour.

But, because there’s always a but …the 737/C-40C model used by members of the Cabinet and Congress can change its configuration to accommodate from 42 to 111 passengers. Let’s just say that Secretary Tillerson is using the 737/C-40B model primary used by combatant commanders; this model still has seats for 26-32 passengers.

Secretary Tillerson traveling party to Asia was small, so he basically flew with a half empty plane but the State Department officially cited “space constraints” as the reason for not having a traveling press. In any case, if Secretary Tillerson is saving money by using a smaller but mostly empty plane, he surely can save more money by using a smaller plane with paying passengers (press pay for their rides in USG planes) instead of empty seats, won’t he? He does not have to take the whole village, but he has to take more than one, and they ought not be preselected for obvious reasons.

To Turkey, to Turkey

On Friday, the State Department announced that Secretary Tillerson will travel to Ankara, Turkey, on March 30, to meet with Turkish President Recep Tayyip Erdogan and other senior Turkish government officials, then travel to Brussels, Belgium on March 31 to visit NATO.

The Freedom House, an independent watchdog organization dedicated to the expansion of freedom and democracy around the world, rates Turkey’s press freedom status as “not free.” Its report on Turkey states: “Media outlets are sometimes denied access to events and information for political reasons. Critical outlets are regularly denied access to the AKP’s party congress and meetings, and the government prevents certain journalists from attending press conferences or accompanying officials on foreign visits.”